the inflation rate on home heating oil is 14%. if the price of home heating oil was $2.25 per gallon, what…
the inflation rate on home heating oil is 14%. if the price of home heating oil was $2.25 per gallon, what is the price today? current price = $? round to the nearest hundredth.
Answer
Explanation:
Step1: Convert percentage to decimal
$14%=0.14$
Step2: Calculate the increase amount
The increase amount is the original price times the inflation - rate. So, the increase amount $=2.25\times0.14 = 0.315$.
Step3: Calculate the current price
The current price is the original price plus the increase amount. So, the current price $=2.25 + 0.315=2.565$.
Step4: Round to the nearest hundredth
Rounding $2.565$ to the nearest hundredth gives $2.57$.
Answer:
$2.57$